New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-06-17
RAILROAD COMMISSIONS.
COMPLAINT OF THE CHICAGO AND ALTON.
THE PENNSYLVANIA COMPANY DEFENDS ITSELF

THE PENNSYLVANIA COMPANY DEFENDS ITSELF
BEFORE THE INTERsTATE COMMISSION
WASHINGTON, June 16.-The room set apart by The
Interstate Commerce Commission for putlc hearings
was completely filled to-day with counsel, Witnesses
and other persons interested in the decision OF the
Commission upon the complaint OF the Chicago ana
Alton Railroad Company against the PennsyiVanls
Railroad Company. There were present Presideht w.
Ii. Roberts and General Counsel Scott and brooks
OF the Pennsylvania Railroad Company Mr. hayden
and Frank LOOMS Of the New York Central Railroad
Company Vice President and General Manager
Chapel, Dir. Charlton general passenger agent ana
Messrs Oates and Brown counsel for the Chicago and
Alton Railroad Company. The burden Of the com
plant, as explained to the Commission by Mr.. Brown
in behalf of the Chicago and Alton Railroad Company
IL that the Pennsylvania Railroad Company and the
pennsylvania Company have violated the Interstate
law in three PARTICULARS In the first place Is alleged
that The Pennsylvania Company has refused to accord
to the complainant equal facilities and advantages
with other roads in the second place il has subjected
the complainant to undue disadvantage; and IN the
third place it charged that the defendants have not
Afforded all reasonable facilities for the interchange
OF traffic and passengers Therefore the cOmplainants
ask that the Pennsylvania Railroad Company and the
PENN lvania Company be required ny the CommIs-
to afford these facilities.
After Mr.. Brown had explained the nature of the
complaint, Mr.. Scott slated the position or the
Pennsylvania Railroad Company, giving in detail a
history OF the negotiations between tue companies
leading up to the refusal to exchange traffic. lie held
that the Commission must hold as the Supreme Court
had held in the OF the Atchson, Topeka and
Santa Fe against the Denver and New Orleans Rail
road Company. that road is not bound to 90 beyond
its own lines TOR the purpose OF making facilities
The broad general question whether the Com
mission would enable few lines to continue aoystem
which only result in actual decentralization
among the officers OF other companies; whether the
good morals of the railroad companies OF the country
and the interests OF the general public do not require
that this practice OF permitting the officers OF one cont
pany to pay commission to the agents OF another
company Tor the purpose OF securing raEc snail nave
put upon 1t the seal OF the Commissions reDrobaton.
A controversy when Mr. Brown attempted to
secure admission that the Pennsy lyania Railroad
Company is member Of the Eastern Association
succeeding what was formerly known as the Eastern
Pool, which managed Castle Garden and required the
Western roads TO pay "a commission OF 10 GEMS Tor
the sale OF their tickets. Finally Mr.. Scott admitted
that bis company was member OF the association
while refusing to admit the truth of the charges
against he association.
Mr. Scott offered to present testimony OF railroad
TO show tn cemorallzing eaect Of the practice OF
paying commissions a.ents sales OF tickets, but
Mr. Brown objected to the competency OF the
evidence-sayiug that be could produce any am Junt
OF testimony OF opposite character. In answer TO
the contention OF Dir. Scott that the commission
practice is offence against morality. he declared
that II was not the function OF the Commission TO
enforce good morals.
The Commission decided to admit the testimony
offered by the counsel tor the Penns ania Railroad
Company, and President Roberts sworn. He said
that he bal found the practice OF paying commissions
to be a great wrong to the public and an evil in rail
road man cement. Several years ago the fennsyl-
vania railroad Company had endeavored TO stop the
practice but the other roads continued II the result
had been that the Pennsylvania road lost heavily N
trailc aud forced To again pay commissions.
When the Interstate Commerce Dill passed the COM
pany had opportunity TO put stop to the
practice, aud cooperating with the Chicago. Bur
llngon and Quincy la 0rdcIe the agents to refuse
to accept commits Ons. The sole tor re using
IN sell Chicago
decinaton OF that company to agree Lot to Interfere
with the agents of the Pennsylvania Railroad Com
Mr. Brown inquired il the Castle Garden Association
does not require tho estern railroads 10 pay 10 per
cent Tor tickets sold over their lines.
Mr.. Roberts replied that the roads deriving traffic
from Castle Garden assisted an amount based
upon their lrom the source to pay the eX
prnss, the association hut this had 40 relation TO
the pa gment Of commissions TO agents.
Comm-sioner Morrison inquired II he had not
known before the passage OF the law thar the practice
Tho witness admitted that he had, and added that
the Pennsylvanii Railroad Company bad discharged
an important agent and spent @l2O,OUO in the effort
to discontinue tue commission practice III 1873.
The next witness called 10y the Pcnnsy lvania counsel
was George T. blanchard COMMISSIONS OF tne zen,
trail Irafic Assoc alton He said ne was certain OF
the evil results OF tue payment OF passenger coinms-
son-. and could thoroughly support what President
Roberts had said about Its demoraiZiug elects Ihe
practice had gone so tar that eases had been known
where the agents made arrdD cement with CON
dncior, by winch the tickets cerc not punched but
iers bv comm-- Gus aud their Offices were the hot
bcds-the brood-nestsol every form OF railway cor
ruptiou. Coatinu NJ, the witness said that OF the
total railroad mileage - per cent OF the COMPANIES
assented 10 the terms of the circular agreeing to
refrain from paying comuisson
r. A. Ford. general ticket agent OF the Pennsylv
COMPANY and }. X. W 3D. general passenger agent
OF tno same cOmppny. also testified.
General Manager G. II. G. appel, of the Chicago
and Alton then took the stand and said that all OF the
road, running west of Chicago had agreed upon a
stated amount OF commls.ion upon t'ckets sold
Witness believed this tended to prevent drerinina-
ton aud cutting OF rates. IA result, all OF the
roads were put upon m equal basis
Mr. Scott wished to be informed a. to the object OF
all of the roads running west from Chicago paying the
same amount OF commits ion to agent of the
Pcun,y lvana Company under orders to sell their
Tickets. ..
ducenont 10 the agent to sell through tickets. 10 ex
plain different routes to the buyer OF tickets aud
t. take interest in the business OF the western
road -
General Passenger Agent James Charlton, of the
Chicago Alton, testified that t"elyc OF the roads
with which his road had done business last year had
boycot ed H. cause of its refusal to sign the agree
mrnt Witness never had agent whJ yentured to
cut rates without his permission.
Mr. Brooks asked what the witness 5Ould thinE OF
the rropf.ety OF the olccr, OF Jne line seeking to
tempt the agents OF another line to violate nstruc
tionF.
The witness had no opinion on the subject has not
thought OF it, Dot would not do 1t himself
Don't Won know IL Is u reprehensibe piece oil
conduct !" inquired Mr.. Brooks.
Mr. Brown took eX"cptiOn 10 the question, how
ever. and 10 was not allowed to stand. with this
testimony Doth sides announced that their evidence
was all ill., and the counsel for both sides summed up
for their respective companies.
Tomorrow the comp amt 0t the Chicago Rock
Island and Puciic againt the New \ ork Central,
similar case in many RESPECTS TO that heard to-day,
will come up. .
Attorneys tor Swift & Co. ana Armour & Co.. OF
Chicago have presento % petition to the Commission
oupiaining against unjust discrimination and eX;
ccssve charges at the hands OF the Baltimore una
Ohio Chicago and GRIND Trunk, indianapolis and st.
Louis Lake Shore aud Michigan Southern Chicago
ST. Louis and Petersburg, Pittsburg and Fort Wayne
and Michigan Central Railroad companies. IL Is
alleged that the unjust rates complained OF are fixed
by an agreement between the owners OF railroad INES
to destroy competition, and that the purpose OF the
4. lie PETITIONERS from obtain